Facts behind the figures;

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ATLANTA HASKINS & SELLS NEW YORK
PHILADELPHIA
BALTIMORE CERTIFIED PUBLIC ACCOUNTANTS PITTSBURGH
BOSTON PORTLAND
BUFFALO SAINT LOUIS
CHICAGO 8ALT LAKE CITY
CINCINNATI BULLETIN SAN FRANCISCO
CLEVELAND SEATTLE
DALLAS TULSA
DENVER WATERTOWN
DETROIT KANSAS CITY
LOS ANGELES
MINNEAPOLIS HAVANA
LONDON
PARIS
NEWARK E X E C U T I V E OFFICES SHANGHAI
NEW ORLEANS HASKINS & SELLS BUILDING
37 WEST 39TH ST., NEW YORK
VOL. VI NEW YORK, FEBRUARY, 1923 No. 2
IT is not inconceivable that some clients
of public accountants view the arrange­ment
for the accountant's services as they
would look upon the purchase of pig-iron or
any other commodity. In many instances
the arrangement is a contractual one, even
though not formally expressed, to audit
the accounts as of a certain date, or for a
certain period, and render a report and
certificate. The compensation is fixed by
the day, with perhaps a maximum limiting
the total charge.
If there were nothing more to accoun­tancy
it would become a sordid business.
If it were a business, doubtless a set of
formulae might be devised which would
make the work largely mechanical. Feed­ing
tobacco into a machine results in cigars
which are the product of material, labor,
and overhead, but the process requires
little thought on the part of the girl opera­tives
who do the feeding.
Accountancy service rendered in accord­ance
with the principles on which its
conception is based calls for something
more than mechanical performance. There
The Facts Behind the Figures
is a duty to think about the client's busi­ness
affairs; to consider the accounts in
relation thereto; to interpret them for him,
if he so desires. It is not sufficient that
there should be a cold-blooded checking of
figures with a set of statements prepared to
exhibit results. The accountant's work
has not been completed until he has told
the client, or anyone else proper y entitled
to the information, what the figures mean.
A recent experience with a manufactur­ing
concern about to put out an issue of
securities through a bond house serves to
illustrate this point. The manufacturer
had furnished certain figures to the bond
house, but the latter considered them
insufficient. After some discussion had
taken place between the two parties the
accountant prevailed on his client to per­mit
the accountant to lay all the figures
before the bond broker. A long conference
ensued at which the accountant not only
furnished all the details required, but
explained them. The result was not only a
successful culmination of the negotiations
for the issue, but more cordial and har-